Nearly Half of German CEOs Plan to Replace Entry-Level Jobs with AI
Published on 07/21/2026 at 06:43 | Redaktion boerse-global.de
A new survey of more than 400 chief executives, conducted in April 2026, reveals that 43 percent intend to replace entry-level positions with artificial intelligence over the next two years. The shift toward autonomous AI agents—systems that operate with minimal human oversight—is already accelerating, according to experts, and places a particular target on office and administrative roles.
The findings land at a moment when Germany’s traditional model of labour relations faces multiple pressures. The Institute of the German Economy (IW) on Tuesday launched a series of events titled “Resilienz im Epochenbruch” (Resilience in an Era of Rupture), aimed at addressing the combined strain of demographic change, the crisis in the automotive industry and the rise of AI. In Mannheim, the Chamber of Crafts responded by scheduling a 4 August online seminar on “New Work” to help managers adapt.
Strikes and court rulings underscore the tension
Collective bargaining conflicts are escalating in the food sector. Yesterday, employees at roughly 20 confectionery manufacturers in northern Germany walked out. Among the companies hit were Bahlsen, Nestlé, the Schwartauer Werke and Froneri. The walkout drew more than 1,000 Bahlsen workers from sites in Hannover, Barsinghausen and Langenhagen alone. A central strike rally in Lüneburg brought together around 1,000 participants.
The Food, Beverages and Catering Union (NGG) is demanding a 5.8 percent pay increase and a minimum of €235 more per month over a twelve-month contract period. Union officials say employers have so far offered only minimal concessions.
Uncertainty is also spreading in the automotive industry. At Volkswagen’s Baunatal plant, roughly 15,000 employees are awaiting details of the company’s announced cost-cutting plan. A labour sociologist from the Sociological Research Institute Göttingen (SOFI) warned that the traditional system of interest balancing between labour and management could be jeopardised. Rumours of a possible global workforce reduction of up to 100,000 jobs and potential plant closures are weighing on morale. A works meeting is scheduled for 28 August, with technology chief Thomas Schmall expected to attend. Such assemblies are a core tool of German collective labour law, designed to make structural changes socially acceptable.
The Federal Labour Court (BAG) added a legal twist to the landscape. In a ruling on 4 December 2025, it clarified that whistleblower protection under Section 36 of the German Whistleblower Protection Act (HinSchG) only applies when a causal link between a report and subsequent disadvantage can be proven. Pre-emptive protection for potential whistleblowers who have not yet filed a report does not exist. The court also decided that the right to continued employment under Section 102(5) of the Works Constitution Act (BetrVG) does not apply for dismissals that occur within the statutory probationary period—a decision that strengthens employer positions early in an employment relationship.
Wages rise, sick days surge
Official data from the Federal Employment Agency shows the median gross salary for full-time employees rose to €4,217 in 2025, an increase of 5.1 percent. The gender pay gap narrowed slightly to €309. At the same time, health insurers report an average of 18.6 sick days per employee. Companies are increasingly turning to legal remedies: labour lawyers note that employers can demand a medical certificate from the first day of illness. If there is concrete suspicion that an illness is faked, engaging the Medical Service or a private detective is legally permissible.
Public sector bonus and social reforms
In the public sector, a new annual special payment under the collective agreement for public service employees (TVöD) takes effect in 2026. Depending on the pay grade and job area, it ranges between 75 and 95 percent of a monthly salary. Employees may instead choose up to three additional days off. The application deadline is 1 September.
Social-policy reforms are adding pressure on low-wage workers. Since 1 July, stricter rules for basic income support have been in force. The federal government also plans cuts to the advance maintenance payment for older children and a reduction in the duration of parental allowance benefits—moves intended to curb labour costs in the face of global competition.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
